Success! Permanent Modification Paperwork Received Today!

When I saw the thick Fed Ex envelope from IndyMac/OneWest, I ripped it open, hoping against hope that it would the permanent HAMP modification documents. To my joy, that’s exactly what I found inside.

 

I immediately started dancing around the house (or hopping on one foot, since I sprained my ankle the other day, lol) absolutely giddy with happiness. I felt light on my feet, in a way I hadn’t felt in a very long time, at least since before this nightmare began. I hugged my husband tightly and both of us rejoiced: that nightmare is finally over.

 

Here are the details of my modification:

 

Principal balance: $258,780.07

Deferred principal: $16,536.08

Term: 37 years

Interest rate: 2 percent

Payment (P&I plus taxes and insurance): $997.27

Modification effective date: 7/1/2010

 

The deferred principal will be forgiven on the maturity date, so there is no balloon payment unless we pay off early, sell, or we refinance. Since I don’t plan to sell or refinance, this works for me. If I ever have the good fortune to be able to pay off the entire balance, I’m sure, I’d have enough to pay the deferred portion anyway. :)

 

While we are still underwater by more than $100K, I am not troubled by that because this house is my home, not an investment. It has intrinsic value beyond dollars and cents to me and my family, so regardless of its market value, I am content to make my payments and be secure that I am no longer in danger of foreclosure. Likewise, I am also content that I have an affordable mortgage.

 

 

As I write this, my happiness is tempered by the knowledge that there are still families out there languishing in modification hell. The HAMP program needs more work and more resources need to be brought to bear on the foreclosure menace.

HAMP Loan Modification Offer Received After A Year!

Good news! Last Thursday I received a Priority Mail package from IndyMac/OneWest. In it was a HAMP trial mod offer which would lower our payments to an affordable level, and if it is approved in the end, will result in saving my home.

 

Emotions are running amok inside me right now. I am happy to finally have the offer and I am also scared that it will end up being ultimately rejected either become somehow I have too much income or not enough income I can verify.

 

Being self-employed makes things a little harder than if I had a job with paystubs and the like, but it I can document what I earn. Whether they will accept that documentation is something I’ll have to find out.

 

I know if I get this mod, it will be a huge burden lifted off my shoulders. This past year has not been easy and has definitely taken a toll on my health and my sanity. It has also been difficult for my husband who is always calm, cool and collected. Even his temper is running remarkably short these days, no doubt due to too much stress.

 

When I think of the bankers and investors on Wall Street who created this mess and basically wrecked the economy to the point that we’re pretty much in another Great Depression, I get really angry. Most especially in light of the lack of humility and remorse among that crowd.

 

There is plenty of evidence that at the very least, these people were negligent. These guys are not unsophisticated folks who got taken for a ride. At all levels, it was known that the quality of the mortgages were not good and that their very design made them doomed to eventually fail.

 

I hope that the government takes a closer look at this and the Wall Street people are held to some degree accountable for what they’ve done. Given the climate in Washington and the amount of access to our Congressmen, Senators, and even our President that the bank lobby has, I doubt that anything will happen to them.

 

For myself, if I am able to get a permanent loan modification, I will be able to save my home. I will be happy with that and I will hope that other families will be able to do the same.

January 4th 2010: National Shame On IndyMac/OneWest Bank Day

It is clear that IndyMac/OneWest has no intentions of granting anyone a permanent modification. It is clear that IndyMac/OneWest will make more money EVERY time it forecloses, thanks to a sweetheart deal with the FDIC. It is clear that our government is owned by the banks and is unresponsive to the will of the people.

We don't have to sit here and take this crap any longer. We need to stand up and demand that our voices be heard, and the first step to doing that is to attend the protest outside of IndyMac/OneWest's offices in Pasadena, CA. on January 4th 2010. More info on the protest here.

But protesting outside of IndyMac/OneWest is not enough. We need to let our government know that we don't approve of the way they've handled the foreclosure crisis and that we don't approve of all of the breaks the banks are getting while homeowners are getting thrown out of their homes.

In order to do that, I propose a massive homeowner protest all across America. On the day of the protest, every distressed homeowner needs to protest outside of their local government offices. If you live in the capital of your state, protest outside the state capital buildings. If you live in Washington, protest outside of the halls of Congress.

Under the face of such a massive public outcry, our government will have to respond. The Wall Street fat cats who were the architects of the current disaster are counting on the American people to be apathetic, to care more about who Tiger Woods is sleeping with than the provisions that are being sneaked into legislation passing through Congress. Prove them wrong. Raise your voices and be heard.

NACA: My Last Hope

Since I've been denied by my servicer when I tried applying for a modification on my own, I have now enlisted the aid of the Neighborhood Assistance Corporation of America (or NACA for short.)

NACA's CEO is Bruce Marks, and he is known for taking the fight directly to the bank CEO's and their families...to make them realize how personal losing your home is and the costs to neighborhoods all across America that rampant foreclosures cause. He styles himself the "banking terrorist" because he will resort to rather interesting tactics to make his point. He will organize a group of homeowners and NACA representatives and dump a truckload of furniture on a bank CEO's lawn. He will organize protests outside the school where the CEO's kids attend. He is ruthless, and as far as I am concerned, the banks have it coming.

NACA has contracts with the major servicers, including IndyMac. I have a running appointment with one of the NACA counselors as I get my documentation together. I am hopeful that something can be done, even if the only thing that can be done right now is a forebearance to allow my husband and I to get back on our feet, and then do the restructure.

NACA works a little differently than HAMP or other modification programs. They start with figuring out how much of a house payment you can afford. There is no set interest rate that it has to be, or loan amount that it has to be. The only question is how much you can afford, after deducting all of your living expenses. Then NACA takes that number and says to the bank, find a way to get the payment down to that number. Whatever is done is a permanent change. No re-sets, no adjustments. The restructure is permanent.

If you're facing foreclosure, contact NACA as soon as possible. The sooner you start the process, the easier it will be for you. Go to www.naca.com